11/8/99 Regarding change from MGCN to MGCNE:
This name change to MGCNE has no effect on MGCN's operations, except that in the last few days, manpower that would have gone into launch preparations has been diverted to dealing with the name change and with inquires rom investors.
About a month ago, the SEC decided it wanted to ask Megachain some additional questions, and requested some additional back up documentation concerning its historical accounts. MGCN promptly provided the requested answers and documents. At the time of filing, MegaChain's books had been completely audited by a private, outside accounting agency, so all of the necessary paperwork was immediately available.
Usually, when firms get into accounting trouble it is due to questionable earnings reporting. MGCN does not have any revenues or earnings yet, so none of the usual red flags can possibly apply here. MGCN's current accounts are quite simple. The SEC's questions deal entirely with ancient history, as far as Megachain's operations are concerned.
Note also that this reopening of MGCN's file and request for additional info happened AFTER the SEC had accepted MGCN's original filing. MGCN's accounts are still posted on the SEC's own archive of fully reporting companies: see
sec.gov
The SEC currently has a backlog of more than a month, and so it hasn't yet processed the additional material that MGCN supplied.
The SEC also has automatic deadlines, which state that any file of any firm in MGCN's class that was not closed as of the November deadline automatically gets the 'e' designation. This is true even if, as in Megachain's case, the delay is entirely the fault of the SEC itself!
MGCN has given the SEC every bit of info they have requested, in a timely fashion. It is entirely due to delays at the SEC that MGCN's symbol changed, and there is nothing MGCN can do about it, except wait for the SEC to process their paperwork.
Megachain has not put out a press release on this, because it has no news to report. However, any investor that is in doubt is free to call or write Megachain's IR dept for confirmation of this information.
|
